2. (25 pts) Below is the balance sheet of US Amalgamated and its subsidiary, British Foods, LTD. The subsidiary is ownd 100% by US Amalgamated, and their financials are in British pounds sterling. British Foods was purchased January 1, 2018. Because of light control of the subsidiary, the current rate method is used for translation. You are to translate the subidiary below, then record on US Amalgamated's books the profit and dividends. You are to show the elimination entries and consolidated statements. Lastly, you must prove the cumulative translation adjustment. Record the profit and dividends on the books of Amalgamated here: Dr. Cr. Elimination Entries Dr. Cr. Consolidated Prove the cumulative translation adjustment here: Dec 31, 2018 Dec 31, 2018 Translated US Amalga. British Foods British Foods Sales $ 400,000 250,000 Expenses using funds 100,000 80,000 Depreciation 100,000 20,000 Income from Subsidiary Net Income f 150,000 RE Jan 1, 2018 Dividends RE Dec 31, 2018 $ 700,000 5,000 f 300,000 50,000 400,000 Cash Receivables Property (net) $ 100,000 200,000 500,000 100,000 150,000 400,000 Property (net) 500,000 400,000 Investment in BF Total Assets f 650,000 $ 76,000 500,000 50,000 200,000 Payables Common Stock Translation Adjustment Retained Earnings, Dec 31 Total Liab and Equity 400,000 650,000 f British foods was purchased on Jan 1, 2018 at book value when net assets were 500,000 The cost was $750,000, as the exchange rate was $1.50 per 1.0 British pound sterling. On that date, British Foods had net monetary assets of 80,000 The exchange rate on December 31, 2018 is $1.60 per 1.0 British pound sterling, and the average rate for the year was $1.55 per 1.0 Bristish pound sterling. The dividend was paid at $1.58 per 1.0 British pound sterling